The Power Of Key Performance Indicators (KPIs)

Discussion in 'Quản trị doanh nghiệp' started by Phu Ton, Nov 29, 2014.

  1. Phu Ton

    Phu Ton Well-Known Member Staff Member


    KPIs are powerful

    They will help you make better decisions.
    You must have timely and accurate information about all aspects of the performance of your team members in order to plan and coach effectively. As a sales manager, you can’t rely on hope and assumptions; you must be assessing real data in real time that will reveal what is going on so you can take action now, before it is too late.

    This leads to better execution.
    Identifying, measuring and – most of all – coaching to the right KPIs leads directly to behavior change and skill improvement across the entire team

    KPIs set expectations and improve communication.
    Defining KPIs clarifies for sales makers the activities upon which they should be spending their time, and provides a context for sales managers to interact with sales makers regarding their performance.

    A clear focus on KPIs will change sales maker behavior.
    Once sales makers understand the activities they are supposed to be concentrating on, they will devote more time and energy to these areas, especially if they know their compensation will be tied to their performance in these areas.

    Focusing on a core set of KPIs will keep sales maker activities consistent.
    There is an old saying; “People don’t do what is expected, the only do what is inspected.” When sales makers understand what you are going to inspect every week, they are much more likely to do them every week.

    Tracking KPIs is the best way to identify and qualify sales maker performance.
    Sales makers might be staying busy and giving a 100% effort every day, which can be confused with real productivity. However, if they aren’t giving that effort to the right activities, all that effort is wasted. Tracking KPIs helps sales managers make sure sales makers are spending the right amount of time on the right activities.

    Tracking KPIs takes the guess work out of evaluation and coaching.
    This is related to the previous point. Sales managers who don’t regularly track sales maker performance against a set of standard KPI metrics don’t really have any objective basis for evaluating performance. The sales maker may be a great person and hard worker, or they may be a disagreeable know-it-all, but those aren’t the most important behaviors for a sales manager to evaluate. The only thing that really matters is how they are performing in relation to the KPIs.

    Effective coaching begins with KPIs.
    Most sales managers understand that coaching is important, but coaching is useless if it is not based on quantifiable, actionable skills and behaviors. The greatest value of tracking KPIs is the information they reveal about where each sales maker is doing well, and where they might need help to do better. Sales managers can quickly access KPI’s from their CRM for every sales maker and use this data to customize coaching conversations that will address gaps and boost performance.
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